Ideas for a European Innovation Council
Experiences from ETH Zurich
The importance of basic research for
innovation
Contact
ETH Zurich
Prof Dr Detlef Günther
Vice President Research
and Corporate Relations
HG F 57
Raemistrasse 101
8092 Zurich
Switzerland
An ETH Zurich case study: Connecting the
links of the innovation chain for disruptive
innovation through blending of funding
instruments on a local, national and
European level
Phone +41 44 632 20 39
Fax +41 44 632 15 92
grants@sl.ethz.ch
Three ideas for getting the European
Innovation Council started based on ETH
Zurich experience in the Swiss habitat
February 2016
1
The importance of basic research for
innovation
History clearly shows how fundamental science1 drives
as incremental innovation large. In order to get industry
revolutions in technology. Discoveries in all scientific dis-
involved and to let science-driven innovation happen, a Eu-
ciplines are essential for societal and industrial develop-
ropean Innovation Council could play a crucial role.
ment and more often than not, the societal impact that
In Switzerland, universities such as ETH Zurich or EPF
eventually results had not been well defined from the onset.
Lausanne have the mandate to expand scientific knowled-
Fundamental research that addresses important scientific
ge through research and to exploit their research findings.
questions can ultimately lead to disruptive innovation, far
On grounds of this open mandate, Switzerland has become
beyond the applications perceived at the time. The past has
the overall innovation leader in Europe according to the
shown that many breakthrough innovations in science had
Innovation Union Scoreboard. Switzerland’s strong perfor-
been discovered unexpectedly, i.e. through serendipity. Basic
mance is linked to being the best performer according to
research is in fact the basis for all the following steps such
six indicators, in particular in open, excellent and attractive
as use-inspired research, application-oriented research
research systems where it has the best performance in all
as well as development and pure applied research. Today,
three indicators, and linkages and entrepreneurship where
use-inspired research is still curiosity-driven and mainly
it has best performance in two indicators (SMEs innovating
actuated by universities. At a certain moment in time indus-
in-house and public-private co-publications). Switzerland’s
try joins a research trend, gets inspired by the universities
relative weakness lies in having below EU average shares
and then develops the trend further according to its very
in SMEs collaborating with others (9.4% compared to 10.3%
specific needs. However, since it is difficult, if not impossib-
for the EU), community designs (0.93 compared to 1.13 for
le, to predict where the next big innovation will come from,
the EU) and exports of knowledge-intensive services (25.0%
basic research activities lay the foundation stone for every
compared to 49.5% for the EU).2
disruptive innovation. Thus, investment in basic research is
essential in order to keep the pipeline for disruptive as well
1 We intentionally use the term “basic” or “fundamental” research and not “frontier” or
“breakthrough” research. Rationale: We can imagine basic research as a puzzle. Some of
the research activities happen at the frontiers (i.e. expanding the puzzle into a larger one),
some others in the middle of the puzzle (i.e. finding the missing piece in order to complete
the puzzle). This kind of research is not at the knowledge frontier, but it is still basic
research and it is essential in order to accomplish the whole puzzle and, eventually, to
move forward.
2 Innovation Union Scoreboard, 2015: http://ec.europa.eu/growth/industry/innovation/
facts-figures/scoreboards/files/ius-2015_en.pdf
2
ETH Zurich
ETH Zurich3 is one of the leading international universities
for technology and the natural sciences based in Switzerland. It is not only well known for its excellent education,
but also for ground-breaking fundamental research and for
implementing its results directly into practice, which makes
ETH Zurich an important partner for companies. As far as
the exploitation of research findings, i.e. the knowledge and
technology transfer (KTT) is concerned, ETH Zurich’s ultimate goal is to create impact via jobs, not income for itself.
CHF 150,000 for 18 months and allow to further develop
investigator-driven research activities into marketable
products. Twice a year a jury composed of business and
academia representatives selects the most promising
young entrepreneurs.
Strengthening the innovation
value chain: Pioneer Fellowship
The ieLab supports the Pioneer Fellows in three different ways:
Innovation Entrepreneurship Lab
(ieLab):
Investing in people, not in ideas
a. individual counselling through mentors and coaches;
b. common education through seminars (“Innovation
Essentials”);
ETH Zurich has integrated its efforts along the innovation
value chain to allow very early technologies to be taken
out of the fundamental research area and be brought on a
development level with direct market and industry links.
This happens specifically through the Pioneer Fellowship.4
Since 2010, the ETH Pioneer Fellowship Grants have been
awarded to MSc or PhD students. The grants consist of
c. common open office space resulting in a “greenhouse
effect”: the young entrepreneurs listen to and watch each
other, support and press each other (“peer pressure +
peer support”).
Coaches are appointed for ensuring in-depth industry and
market knowledge. These coaches must have at least 10
years of work experience either as serial entrepreneurs or
as CEOs of successful international high-tech companies.
3 ETH Zurich has more than 18,500 students from over 110 countries, including 4,000
doctoral students. About 500 professors currently teach and conduct research in
engineering, architecture, mathematics, natural sciences, system-oriented sciences,
management and social sciences. ETH Zurich regularly appears at the top of international
rankings as one of the best universities in the world. 21 Nobel Laureates have studied,
taught or conducted research at ETH Zurich, underlining the excellent reputation of the
university.
Boosting research-driven entrepreneurship
at ETH Zurich
4 https://www.ethz.ch/en/research/research-promotion/eth-internal-programmes/
pioneer-fellowships.html.
•
Life of a Pioneer at ETH Zurich:
entrepreneurship personality of the researcher.
continuous tracking of a process
•
•
abandon) the project. This is an obligation for every
funding instrument in this field – without agility, there
development, business canvas, design of product).
is no success in today’s volatile high-tech markets.
Month 9: Assessment and decision whether the idea
•
is supported by the market, mainly private investors.
•
The coaching/mentoring is thus a continuous tra-
If not, the Fellowship is either being adapted or
cking of a process and not a one-time assessment of
abandoned.
an idea.
•
Month 18: A company is usually founded shortly
ETH Zurich always stays true to the principal of the
“Minimum Viable Product” in the framework of a
before or soon after month 18 (end of Fellowship).
•
If an initial idea does not receive immediate positive
market response, the Pioneer Fellow has to adapt (or
Month 6: Pioneer Fellows have to formally show that they
are on track (achieving technical milestones, business
•
The Pioneer Fellowship is about developing the
“Lean Start-up” paradigm:
Follow-up: The ETH spin-off can remain on the cam-
→→ The feedback for an idea needs to come directly
pus for up to two years and has access to a variety of
from the market and not from an expert committee.
services and infrastructures.
3
An ETH Zurich case study:
Connecting the links of the
innovation chain for disruptive
innovation through blending of
funding instruments on a local,
national and European level
that: the discovery that the bile acid THBA can modulate fat
cell formation, together with the results of the Pioneer Fellowship “Novel treatments for obesity linked type 2 diabetes”
(see below), led to the formation of the spin-off Glycemicon.5
How was it possible to create the
spin-off Glycemicon?
ERC Starting Grant and Proof of Concept
Christian Wolfrum, ETH Zurich professor of translational
nutrition biology, is seeking out new substances with which
The ERC Proof of Concept (2012-2013) of Prof. Wolfrum was
to combat diabetes: “We’re looking for ways to spur the
initiated based on a finding in the second year of the ERC
formation of new fat cells to prevent the excessive growth
Starting Grant (2008-2013) which identified RORγ as a no-
of the existing ones, because that’s good for your health.”
vel regulator of fat cell formation and THBA as its potential
In the process, Christian Wolfrum always bears in mind his
ligand. With the ERC Proof of Concept, it was possible to
main question: Which factors control the formation of new
perform a toxicological assessment of THBA. In parallel, a
fat cells, and how can we make use of these in the fight
set of well-defined THBA analogs were synthesized with the
against diabetes? One such modulator is the bile acid THBA.
aim to widen the IP position. Wolfrum and his team antici-
While it is bound to the receptor RORγ, it inhibits the recep-
pated that it would be possible to implement this naturally
tor’s activity, which promotes the formation of new fat cells.
occurring bile acid in the context of two separate therapies:
Wolfrum and his team have succeeded first in characterizing
(i) THBA can be envisioned to be employed as a nutraceuti-
RORγ as key modulator of fat cell formation and second in
cal in common foods; (ii) THBA could find a niche in the
identifying its natural inhibitor as the bile acid THBA. “There
ever-expanding over-the-counter market. THBA or modified
was a bit of luck involved, too,” Wolfrum admits. He goes on:
derivatives may also be useful as stand-alone medication,
“We were coming from fundamental research, but it was
definitely worthwhile going further.” There’s no doubt about
5 http://www.glycemicon.com/
Weight gain
There are two scenarios
for weight gain: either the
additional fat is absorbed
by existing fat cells, which
causes them to grow in
size (A), or it is distributed
among newly formed fat
cells (B). Some 20 percent
of overweight people are
healthy and have smaller
fat cells. Their risk of
developing diabetes or
cardiovascular disease is
very low compared to most
overweight people, who
have enlarged fat cells.
That›s why ETH professor
Christian Wolfrum and his
team are looking for ways
to encourage the formation
of fat cells.
A
Existing fat
cells grow
Aim
of the
research:
Encourage
formation of
fat cells
Weight gain
B
Existing fat cells
Additional
fat cells are
formed
4
Risk of type 2
diabetes and
cardiovascular
disease is higher
Health risk
is lower
to treat metabolic co-morbidities such as type 2 diabetes
collaborating with the support of CTI project grants. These
associated with obesity.
CTI grants allow the young company to perform high-end
research with a state-of-the-art ETH Zurich laboratory.
Pioneer Fellowship “Novel treatments for obesity linked type
2 diabetes”
The blending of local, national and European funding instruments allowed for the foundation of a
promising spin-off in a highly competitive international market
In 2011, Susanne Wolfrum und Riccardo Cribiu were Pioneer
Fellows with Professor Erick M. Carreira at the Chemistry
Department of ETH Zurich. The objective of their Fellowship
was to search for novel treatments for obesity linked type
The ETH spin-off Glycemicon was created based on
the findings made in the course of the ERC Proof of
Concept and the ETH Pioneer Fellowship. In addition, the two Pioneer Fellows received financial support from Venture Kick7, which allowed them to
2 diabetes. They have synthesized and identified THBA as
modulator of RORγ, a transcription factor that positively
controls whole body homeostasis by regulating adipocyte
development. This result enabled Professors Wolfrum and
Carreira to uniquely position THBA in the competitive type
develop the business strategy. Coaching for Glycemicon as well as grants in order to continue research
collaborations between the company and ETH Zurich
came from the Commission for Technology and
Innovation (CTI).
2 diabetes market.
The isolation and synthesis of several other bile acids allowed Wolfrum/Cribiu to expand the IP position by filing a
second patent. They also improved the preparative route enabling them to perform large-scale synthesis of THBA. This
→ Just three years after its foundation, the ETH
spin-off Glycemicon managed to take ninth place in
Switzerland’s TOP 100 Start-up Awards 2015. With
the first set of preclinical tests now concluded, clinical trials are set to go ahead in 2016. Close interacti-
additional data was used for fundraising to finance the future
nutraceutical or pharmaceutical development of THBA in
line with the creation of the ETH spin-off Glycemicon.
Commission for Technology and Innovation (CTI): Coaching and
grants6
on with ETH will fuel Glycemicon’s pipeline with
innovative new approaches to tackle obesity and type
2 diabetes.
Currently, the CEO of Glycemicon comes from one of the
founder labs of the spin-off. Glycemicon and ETH Zurich are
6 The CTI, as of 2017 Innosuisse, funds grant applications submitted jointly by academic
organisations and companies (SME, industry). It funds 50% of the total project costs,
namely those of the academic organisations. The companies do not receive any cash
contributions from the CTI. They have to provide their own in kind (40%) and cash (10%)
contributions in order to get the CTI funding for their academic partners. The joint grant
applications are assessed by relevant experts from academia and industry.
7 A philanthropic initiative of a private consortium of business angels and venture capital
firms. Members are Gebert Rüf Stiftung, Ernst Göhner Stiftung, OPO-Stiftung, Fondation
Lombard Odier, Debiopharm Group, Rising Tide Foundation, Fondation ProTechno, André
Hoffmann, Martin Haefner, Hansjörg Wyss.
5
Three ideas for getting the European
Innovation Council started based on ETH
Zurich experience in the Swiss habitat
1. Favourable environment for universities and business
development: enabling and enhancing knowledge and
technology transfer on all levels (regulations, fiscal
system, public support for risk reduction and advice)
• Econometrical studies confirm a positive effect
of KTT activities with universities both in terms of
innovation performance and the companies‘ productivity. A company with KTT activities profits from an
average productivity increase of 6.3% compared to a
company without university interactions.1
2. European ieLabs co-funded by the EIC
• Key factors for the high success rate of ETH Zurich’s
spin-offs (over 90% survival rate in the first five years)
are the constant assessment, coaching & mentoring
and the facilities, i.e. the ieLab that makes it possible
for young entrepreneurs to develop their skills.
3. Instruments and governance of the EIC: public funding for open Proof of Concepts on European and
international level • Label for European spin-offs •
Decisions made by international representatives from
academia, business/industry and venture capital funds
• The Pioneer Fellowship enables young entrepreneurs to develop their ideas into marketable products in a safe environment and thus to bridge the
“valley of death”. Important is the fact that the people
and not the ideas are chosen by a jury of academic
and business representatives. Moreover, the project
is being constantly evaluated and may be abandoned
if the response from the market is not positive.
• One of the key features of the Swiss Commission of
Technology and Innovation (CTI) is that no (public)
funds are given to companies. Companies make
their own strategic investment decisions and then
approach the appropriate universities directly, which
obtain CTI funds for their part.
1 Arvanitis, S. and M. Wörter (2014): Universities and Corporations: The Case of Switzerland, in: Bressan, B. (ed/s.), From Physics to Daily Life, Wiley Blackwell, Weinheim,
275–325.
Fundamental Science
Applied Science
Academia and Business: Selection
ETH Zurich
University College
London
French National Centre
for Scientific Research
(CNRS)
Weizmann Institute of
Science
University of Cambridge
EPFL
IP
EI
C
European
ieLabs
Talent
Fe
llo
ws
h
ip
Business: Coaching
Entrepreneur
University of Oxford
Max Planck Society
Venture Capital
Hebrew University of
Jerusalem
Imperial College London
etc.
No immediate market
response → Termination
6
Spin-off
Public support for KTT